The document discusses the implementation of lean management at Terex Cranes in Zweibrücken, emphasizing that 'lean management' equates to 'learn management.' It details the historical context and principles of lean production, showcasing the benefits achieved through inventory reduction and improvements in production efficiency. The document highlights the significance of leadership, teamwork, and continuous improvement in fostering a learning organization within the manufacturing environment.

1. Lean Management
=
Learn Management
Klaus Beulker
Managing Director Terex Cranes Germany
Copyright Institut Lean France 2016 Page 1

2. Lean Management = Learn Management
Source: The Machine That Changed the World by J. P. Womack, D. T. Jones and D. Roos
Copyright Institut Lean France 2016 Page 2
But there are ongoing rumours that the original text looked like:
“We felt that the most constructive step we could take to prevent this development from occurring
would be to undertake a detailed study of the new Japanese techniques, which we subsequently
named “learn production”, compared with the older Western mass-production techniques, and
to do so in partnership with all the world´s motor-vehicle manufacturers. But how?...”
Published Text:
“We felt that the most constructive step we could take to prevent this development from occurring
would be to undertake a detailed study of the new Japanese techniques, which we subsequently named
“lean production”, compared with the older Western mass-production techniques, and to do so in
partnership with all the world´s motor-vehicle manufacturers. But how?...”

3. Agenda
 Introduction
 What is Lean Managemen at Terex Cranes Zweibrücken
 Examples how Lean at Terex is organized and applied
 Change and Learning if Lean Management is applied at Terex
 Summary
Copyright Institut Lean France 2016 Page 3
Lean Management = Learn Management

4. streng vertraulich
0,0
0,5
1,0
1,5
2,0
2,5
3,0
3,5
4,0
4,5
5,0
90.000
100.000
110.000
120.000
130.000
140.000
150.000
160.000
4
Inventory
reduction
by
35Mio.€
Turns
improved
from
2 to 4.3
Close
the
door
Reduce
leadtime
in SAP
Apply the
lean tools
Apply the lean tools: Based on JIT and JIDOKA the lean promise works.
2013 2014 2015
Lean Approach started in September 2014.
End 2015: Turns 4.3, Inventory -35Mio.€.

5. Copyright Institut Lean France 2016 Page 5
Range of Products Terex Cranes
Telescopic Cranes
- Maximum lifting capacity of 100-1000t
- Can be used for a wide range of lifting needs
in a variety of terrain (off and on the highway)
- Can quickly move to another job
Customer Takt: 1day
Cycle time: 40days
Crawler Cranes
- Terex is market leader for Crawler Cranes
above 400t lifting capacity (400-3,200t)
- Is primarily used in the petrochemical industry,
power plant construction, infrastructure and to
build up windmills
Customer Takt: 5days
Cycle time: 100days

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Operations Terex Cranes Zweibrücken
Operations Team Terex Cranes Zweibrücken:
Safety – Quality – Plant DS – Plant WS – Plant Bierbach – Plant Pecs – R&D – Procurement – HR – TBS
3 Locations in Germany:
Dinglerstraße, Wallerscheid & Bierbach
Around 1600 Team Member
1 Location in Hungary – Pecs
Around 250 Team Member
Steelwork Telescopic Cranes
Plant
Steelwork Crawler Cranes
Plant
Telescopic Cranes
Plant
Crawler Cranes
Plant

7. Copyright Institut Lean France 2016 Page 7
Examples of Application of Terex Cranes
Telescopic Cranes:
Lifting the roof of a
building.
Crawler Cranes:
Lifting Space Shuttle on an
airplane.

8. Agenda
 Introduction
 What is Lean Managemen at Terex Cranes Zweibrücken
 Examples how Lean at Terex is organized and applied
 Change and Learning if Lean Management is applied at Terex
 Summary
Copyright Institut Lean France 2016 Page 8
Lean Management = Learn Management

9. Copyright Institut Lean France 2016 Page 9
What is Lean Management at Terex Cranes?
Answers to what Lean Management is:
1. Let the material flow.
2. All life is problem solving.
3. Lead with respect.
4. Touch the product.
And – there are 5 laws of nature:
1. Every second decision is wrong.
2. Operator is always right.
3. Not thinking, knowing.
4. Quality first is Quality first.
5. Pay now or pay later.
And for sure Lean Management is the opposite of
what we can see on the picture.

10. Copyright Institut Lean France 2016 Page 10
Toyota House reminds us what is the North
Star we are aiming for.
Competetive advantage by
customer satisfaction
through
people development.
JIT
Teamwork:
• Flow
• Takt
• Pull
JIDOKA
Respect:
• Stop the line
• Seperate man
and machine
Basic Stability
Safety, quality, flexibility, costs, …
Standardized Work
and KaizenHeijunka

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Let the Material flow
Ohno, Toyota Production System, page 1:
„All we are doing is looking at the time line. From the
moment the customer gives us an order to the point
when we collect the cash. And we are reducing that
time line by removing the non-value-added wastes.“
Cycle Time
Order Cash
Source: Ohno, Toyota Production System

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Leadership, Teamwork and Support is
needed in a Lean Management System.
Stop the line
5S
TPM
Yamazumi
SMED
Flow
Pull
Takt
Heijunka
Standards and
Visualization
Kaizen
Leadership
Teamwork
Support
Let the material flow

13. Agenda
 Introduction
 What is Lean Managemen at Terex Cranes Zweibrücken
 Examples how Lean at Terex is organized and applied
 Change and Learning if Lean Management is applied at Terex
 Summary
Copyright Institut Lean France 2016 Page 13
Lean Management = Learn Management

14. Copyright Institut Lean France 2016 Page 14
Material- and Informationflow of Crawler
Cranes Plant
• Flow
• Pull
• Levelling
• Heijunka
• After Pacemaker Fifo
• Before Pacemaker Pull
• Quality gates
• Visualization and Standards
Informationflow
Materialflow
Incoming Goods Assembly, Painting, Testing ShippingSteelwork

15. Copyright Institut Lean France 2016 Page 15
Quality Gates and Stable Teams
Lackierung Qualitätstor1
Qualitätstor3
Qualitätstor2
Qualitätstor6
Qualitätstor4
Quality Gates are defined for each logical part of the supply
chain.
Each Quality Gate is defining an area of responsibility for a
defined team. The Team is in charge of daily output, quality,
standards and Kaizen.
TEREX?

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Size of the teams is between 5 to 12 Team
members
Assembly Steelwork
Plant Manager
Supervisor Supervisor
Hancho Hancho Hancho Hancho Hancho Hancho Hancho Hancho Hancho Hancho Hancho Hancho
Production Manager

17. Copyright Institut Lean France 2016 Page 17
Obeya Room in the Plants
On daily basis plant management is meeting in the
Obeya room.
Daily Topics:
1. Safety
2. Quality
3. Specific Customer requests for each crane
4. Delivery
5. Engineering Changes
The Obeya room gives orientation.
On one hand it‘s about managing the day.
On the other hand every day people have the
opportunity to learn from each other more about the
business.

18. Copyright Institut Lean France 2016 Page 18
Lean Management Architecture at Terex
Cranes Zweibrücken
Hoshin Kanri
Monthly
improving the value stream (flow, tact, pull)
Kaizen workshops
continuous improvement on the shop floor
Daily
Communication and meaningful discussions: what to change, where to go, next step
2 times a year

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Hoshin Kanri on a monthly basis
Monthly meeting as a team:
Engineering, production,
procurement, quality, finance,….
1. Use of an X Matrix make strategy deployment visible. Team
leaders and support teams are identified. Everyone is on the same
page.
2. Status of scorecard on a regular monthly basis.
3. Milestones in the action plan. critical path identified. Clear
picture of the impact of the different activities.
4. The Team identifies the problem, understands the problem,
agrees to the problem, address the issue and fix it, using the
discipline of root cause analysis (root cause analysis).
The format of the meeting is standardized making sure to have
meaningful discussions from the beginning.

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Is it a good day or a bad day?
Every Team has a daily target
The team has to visualize the output
If the promise of the hour cannot be fullfilled,
the team has to visualize the problem and to
share their opinion what the reason could be.
This offers the opportunity to support short
term and to have a discussion how the
production system works.
Handwritten production loss analysis board

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Problemsolving: Using A3 in order to have a
structured way to learn.
Each defect offers the
opportunity to learn and to
improve
Problem description
Short term countermeasure
Thesis and ideas
Checking the thesis and ideas
Ask 5 Why
Introduce Countermeasures
Check if it works
Evaluate and share with your colleagues

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Engineering
Visualization of:
Risk analysis of new developments from customer perspective
Customer Request
Field issues
Serial support

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Procurement
Visualization of:
Missing Parts
Supplier development projects
Problem solving in Teams
Introduction of Milk Runs

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Role of the Teamleader (Hancho)
Go and see (Dojo, Kata)
Understand deeply the working condition and skills
Have a discussion to find opportunities for improvements every
day and every TM

25. Copyright Institut Lean France 2016 Page 25
Opportunities of improvements
or: „Do we show respect?“
Plan – do – check - act
Visualization of:
New ideas of Team Members
Ideas for implementation and evaluation
Action plan

26. Copyright Institut Lean France 2016 Page 26
Improving
Improve performance
Improve processes Improve visualization
Improve working conditions and/ or skills

27. Agenda
 Introduction
 What is Lean Managemen at Terex Cranes Zweibrücken
 Examples how Lean at Terex is organized and applied
 Change and Learning if Lean Management is applied at Terex
 Summary
Copyright Institut Lean France 2016 Page 27
Lean Management = Learn Management

28. Copyright Institut Lean France 2016 Page 28
Problem Solving as a Driver of
Lean Management Implementation
Ressources: Inventory, People,
Capacity, Time.
Problems

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Leading change is changing how to lead.
Source: Heitger/ Doujak, Harte Schnitte – neues Wachstum
Ability to change
Necessitytochange
Learning organisation
Teamwork
Secure survival
Crisis management
Direction of change

30. Copyright Institut Lean France 2016 Page 30
Steps how people learn: „Ohnono method.“
Data
Symbols
220 C/ y
220 Cranes per year
- Information - Knowledge - Problemsolving - Responsibility
- Understanding- Emotional Engaged - Competency - Development and Growth

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Change Management
Source: Königswieser, Das Überbringen schlechter Nachrichten
Change
New Identity
Fear,
Unsecure,
Worries
Irritation, Rage,
Aggressive
Actual Identity
Sadness
Curiosity,
Interest,
Breakup
Frustration,
Depression

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Mentor/ Mentee Prinziple
or: „Produce people before producing parts.“
Take customer perspective
On the spot
Daily check of standardized processes for deviations
Enquiring and respectful fundamental attitude
Define challenging and reachable target states
Show opportunities and allow to use
Proceed step by step
Run PDCA cycles
Start experimental tests immediately
Secure review and evaluation of results
Telemachos und Mentor
Frequency
of
problems
Difficulty of problems
Expert knowledge necessary
for solving

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Gemba walks on a daily basis
or: „It is clear, what is important.“
Typical questions on the walk:
Good or bad day?
Can we comply with the standardized workflow?
Which barriers do exist between the target and the
current state?
How can we overcome these barriers?
Daily Gemba walk:
Learning on the shop floor
Act
Evaluate
What ergonomic problems the company leaves
to operators?
What quality problems the company leaves to
customers?
What flexibility problems the company ignores?
What cost the company accepted to spend?
What visible problems the company thinks
don’t exist?
Plan

34. Agenda
 Introduction
 What is Lean Managemen at Terex Cranes Zweibrücken
 Examples how Lean at Terex is organized and applied
 Change and Learning if Lean Management is applied at Terex
 Summary
Copyright Institut Lean France 2016 Page 34
Lean Management = Learn Management

35. streng vertraulich
0,0
0,5
1,0
1,5
2,0
2,5
3,0
3,5
4,0
4,5
5,0
90.000
100.000
110.000
120.000
130.000
140.000
150.000
160.000
35
Inventory
reduction
by
35Mio.€
Turns
improved
from
2 to 4.3
Close
the
door
Reduce
leadtime
in SAP
Apply the
lean tools
Apply the lean tools: Based on JIT and JIDOKA the lean promise works.
2013 2014 2015
Lean Approach started in September 2014.
End 2015: Turns 4.3, Inventory -35Mio.€.

36. Copyright Institut Lean France 2016 Page 36
Lean Management = Learn Management
Critical process performance indicator
is the leadtime. By using value stream
mapping waste is identified and can be
eliminated. Applying the lean tools again
and again lead to the expected results.
Continuos improvement has to be organized on the shop floor on a daily basis (go to gemba).
Applying lean tools leads to sustainable results if the activities are organized, standardized and
practised every day (Dojo-/ Kata- Activities). The improvements are based on behaviour of the
leadership team.
Repetition, practising and applying the lean tools change behaviour and mental frameworks. It leads to
recognition, respect and trust.
Matrix: „There is no spoon.“